5 toxic money habits to quit in your biz
We all start our businesses wide eyed and bushy tailed. Ready to make our millions IMMEDIATELY, haha. No but really, how many of us start our businesses thinking that we’re supposed to be making 6 figures within the first 6 months of our business?
The money pressure is real in our business, especially when you end your first year and you’re -$10,000 profit.
Our business is built and sustained on our habits with money. The primary function of a business is to make more money.
Our habits with money? The #1 thing that we need to work on in order to create a healthy, sustainable, and profitable business.
Now maybe you’ve been working on:
your marketing
your content
your selling
perfecting launches or blogging or Instagram
BUT if you don’t have good habits with money (the main thing your business is supposed to make) you will end up burnt out, broke, and confused.
Let’s talk about 5 habits to quit today to start having that business that makes more money and creates more revenue.
1) Not tracking your money
This is rookie entrepreneur mistake #1 and one that I myself also indulged in with my first businesses. When I started my very first business venture I was funneling my personal money into my Etsy shop but not keeping tabs on how much I was spending. I had no real way to gauge how much I had invested into that business and how much each item was costing me to make << big deal here.
I would buy necklaces at a thrift store and flip them on my Etsy shop and just funnel the money to me.
But when it came to starting my 2nd business, I got serious. I set up business accounts and kept track of taxes using software, BUT still there was even a deeper level to go.
I didn’t understand how I could make consistent money because I worked in a seasonal business (wedding flowers) but I could have if I tracked my money.
If I tracked my money, knew my expenses down to the penny, I could have budgeted my money to hold me over in the winter months or at least I would have known.. how much money do I need to live and float my business?
Tracking your money, all the money.
The money that’s going in, the money that’s going out, and where you want your money to go for the future.
My favorite tracking software that I use for my business and personal financial management?
You Need a Budget (but you really do though)
Here’s how I use YNAB to track my money in my business:
You can see from the photo that I use YNAB to track all of my expenses, but more than that, I also use it to plan for future investments. Things like a new computer or a photoshoot.
I give all my money in my business DIRECTION.
I don’t spend my money without consulting with this first and asking myself if it makes sense in my budget and my goals.
Think about it this way: my budget reminds me of my financial goals.
When I want to spend money my budget reminds me: Is this on track with your financial goals?
Or If I make this investment it will set back my financial goal for this thing.. is that okay with me?
It shows you how to make conscious decisions with your money not unconscious.
2) Setting unrealistic money expectations
You haven’t made 6 figures in your business yet? YOU.ARE.NOT.A.FAILURE.
Please don’t ever think that you need to make a shit ton of money IMMEDIATELY.
I see this happen all the time with my clients and students, this idea that they’re supposed to be making a million dollars in the next 3 years. What? Why?
Also: that sounds exhausting, haha. There’s nothing wrong with being ambitious and wanting to have big dreams but let’s turn down the pressure.
You will be a millionaire, you will be successful, but your business is like a plant.
Give it time to grow.
Give yourself patience to let YOU GROW.
You wouldn’t yell at your kid for not growing fast enough right?
Your child has so much to learn and do and become, they need guidance and support, and most of all.. they need time.
Have that same empathy for your self.
You need time to grow, change, and become a new person.
Please, give yourself some time, set more realistic expectations for what you can do with what you have now.
3) Not working on your money mindset
Your business has 1 primary function: make money.
That’s the pure and honest truth about what your business needs to do.
If you want it to have another purpose like fulfill you or be a creative outlet without the pressure of making money, then keep it what it is, a hobby.
There is absolutely nothing wrong with that.
EVERYONE NEEDS HOBBIES!
But if you’re serious about wanting to create a business, the purpose of a business is = MAKE. FREAKING. MONEY.
How do you feel about money right now?
What primary emotion does money give you?
How are your personal thoughts, feelings, and beliefs about money playing out in your business?
Think about how much money is talked about in business: it’s in your marketing, it’s in your sales, and it’s in your conversations with clients.
If you bring all your own money shit to the business, your business will have the SAME MONEY PROBLEMS AS YOU!
If you don’t feel worthy of money, you will undercharge.
If you have anxiety about money, you will constantly be hustling for the next sale because you worry about having enough money.
If you don’t want to look at your money, your money will be mismanaged in your business.
If you’re serious about changing your money habits in your business and you’re ready to learn more about how you can:
pay off debt
create more money
and take control of your financial future..
THEN GIRL HAVE I GOT A SEAT FOR YOU.
I’ve created a 6 part financial boot camp for the female coach or serviced based provider who is looking to get her business finances on FIREEE.
It’s your time to BREAK BROKE
4) Letting your business be a money hungry bitch / hoarder
It takes money to make money, but how much money is that?
Do I invest more money into my business?
What investments do I make?
Do I really need to invest money in my business? Can’t I do it all myself?
How do we know whether our businesses are being money hungry or money hoarders? It’s all about BALANCE.
Investing in your business is necessary but too much investing might leave you feeling resentful and broke.
Hoarding your money because you’re scared of spending will lead you to burn out.
My mother in law who is a successful business owner, put it this way one time:
“allow money to circumvent”
Allowing money to circumvent in your business creates a healthy dynamic of allowing money to move around in your business.
Whether it goes to you or a team, or investments.
Find your balance between investing, saving, and spending.
5) Carrying debt
It’s okay to have debt when you start your business.
A business does take money to make money, but falling into the trap of always having debt won’t allow your business to grow.
Debt either way you put it is something that will weigh you or your business down.
Think about it this way:
if your business carries a $10,000 credit card balance with a 14% APR (average credit card APR in 2020):
Over the course of the next year you will be giving your bank:
$1400 of your hard earned money.
$1400!! that’s just 1 year, if you stay in debt for 3 years you’ll be giving the bank:
$4,200! WHHHATTTTT.
Now imagine you get out of the debt and you get to pay yourself that $4,200 over the course of 3 years.
How could that extra $4,200 change your life over the next 3 years?
Now these toxic money habits may have started in your personal life and you carried them over to your business. Maybe you never took financial classes or maybe you started a business on a whim never knowing it would turn into this money making thing.
But you get to change that right now today.
Today you get to decide that you don’t have to complain to your partner about debt or feel ashamed that you have debt.
Or sit with anxiety any longer about the shame you have around debt.
I have a free 4 part boot camp to kick off your new journey with money called:
Breaking Broke
It’s 6 super short emails that get straight to the point of fixing your money mindset and setting healthy financial habits.
